Dell Technologies Q4 mixed amid strong commercial PC sales, but soft server market


Dell Technologies Q4 mixed amid strong commercial PC sales, but soft server market

Dell Technologies delivered mixed fourth quarter results as earnings fell short of expectations and sales were in line.

The company reported fourth quarter revenue of $24 billion, up 1% from a year ago, with earnings of $416 million, or 54 cents a share. Non-GAAP earnings were $2 a share.

Wall Street was expecting Dell to report fourth quarter revenue of $24 billion with non-GAAP earnings of $2.02 a share.

For fiscal 2020, Dell Technologies reported revenue of $92.2 billion, up 2% from a year ago with net income of $5.5 billion, or $6.03 a share.

Jeff Clarke, chief operating officer of Dell Technologies, said that it simplified its business and is poised to capitalize on “the next digital decade.” Dell Technologies announced that it was selling its RSA unit.

Dell Technologies ended the quarter with cash and investments of $10.2 billion and paid $5 billion in gross debt in fiscal 2020. Dell ended the quarter with $44.3 billion in long-term debt.

By unit, Dell’s PC unit delivered fourth quarter revenue of $11.8 billion, up 8%, due to the enterprise PC upgrade cycle and end of life for Windows 7 systems. Operating income for the fourth quarter was $624 million.

Dell’s infrastructure unit struggled in the fourth quarter with revenue of $8.8 billion, down 11%. Storage revenue fell 3% while servers and networking revenue fell 19%. Operating income was $1.1 billion. The company said the server market was soft in China and among large enterprises in US and Europe.  VMware also performed well for Dell Technologies. Dell Technologies makes VMware linchpin of hybrid cloud, data center as a service, end user strategies

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